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Investing.com - RBC Capital raised its price target on Fluence Energy Inc. (NASDAQ:FLNC) to $10.00 from $9.00 on Wednesday, while maintaining a Sector Perform rating on the energy storage company’s stock. Currently trading at $16.77, the stock is significantly above RBC’s target and appears overvalued according to InvestingPro analysis, despite its impressive 243% surge over the past six months.
The price target increase follows what RBC described as a "solid" fiscal fourth quarter 2025 performance from Fluence, despite some revenue being pushed to fiscal year 2026. InvestingPro data shows the company generated $2.26 billion in revenue over the last twelve months, though it remains unprofitable with a weak gross margin of 13.13%.
RBC Capital noted that investor focus is now shifting to Fluence’s execution with datacenter customers and continued backlog growth, which the firm believes are necessary to support current valuations.
The investment bank indicated that revenues and bookings with datacenter customers are expected to be largely weighted toward the second half of fiscal year 2026.
RBC cautioned this timing could create a "near-term air gap of incremental proof points" to support the company’s fiscal year 2027 outlook and demonstrate that Fluence is successfully winning datacenter business.
In other recent news, Fluence Energy reported its fourth-quarter earnings for 2025, which fell short of market expectations. The company posted earnings per share (EPS) of $0.13, missing the anticipated $0.21, which represented a 38.1% negative surprise. Revenue also fell below forecasts, coming in at 1.04 billion dollars compared to the expected 1.39 billion dollars, a shortfall of 25.18%. Despite these financial misses, the company’s stock experienced a notable rise in regular trading. These developments highlight the challenges Fluence Energy faced in meeting analyst projections for the quarter. Investors may be interested in how the company plans to address these shortfalls in the future. The reaction of the stock market suggests that there may be other factors influencing investor sentiment.
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